Hiya,
There is a full due diligence (although we have yet to see it) but no money is changing hands until we see it and get it checked out.
The money is held separately by an escrow agent and is released to the developer in stages.
The money held is also only held against your block so cannot be used to build a separate block.
At the moment, only the first phase has been released (this will be 750 units) and I know they had 280 contracts to send out (from the pre-launch buyers). I am assuming they will start to sell more now its actually launched and people have something to look at from the brochure and when people eventually start visiting the site.
I went with the assumption that if the developer has bitten off more than he can chew, he will not complete the second phase which is the other half of the plot of land. I am quite confident that, having sold 280 units since January 2008 this year, that they will sell the remaining units in phase 1 before they go on to start promoting phase 2.
Also on the rental income you can opt for a bank guarantee if you so wish, or just opt for the developer guarantee.
Any more questions please feel free to ask.
Lou
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